Multiple Choice
Random-effects models are more appropriate than fixed-effects models when
A) the time invariant component of the error term is not correlated with one or more the independent variables.
B) dealing with panel data.
C) the error term is random.
D) the intercept is not constant.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: Fixed-effects models are preferable to pooled cross-section
Q22: The fact that panel data varies across
Q23: What does the error term look like
Q24: Random-effects models improve on pooled cross-section models
Q25: Suppose that in an effort to explain
Q26: What is a random-effects model? How do
Q27: Suppose that in an effort to explain
Q29: What is a fixed-effects model? How do
Q30: Using the National Longitudinal Survey of young
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